My wife is a registered nurse and works at a hospital in Missouri (on the State Line), but we live in Overland Park (Kansas). They take out Missouri income taxes, but not Kansas.
Will we have to claim income taxes in Missouri and Kansas? Isn't that illegal (double taxation)?
We will claim federal taxes in Kansas (state of residency), but we are concerned that we are going to pay 40% in taxes versus our normal 20% bracket. HELP!!!
2007-09-30 12:58:24 · 3 answers · asked by thebehm5 2 in Business & Finance ➔ Taxes ➔ United States
You will file a resident KS return and a nonresident MO return. KS, in turn, will give you a credit for your taxes that were paid to MO which eliminates the effect of double taxation. For example, your wife makes $20,000 and has $500 in MO taxes withheld. She files her MO nonresident return and gets a refund of $100. When you file your KS return, it will show the tax on the entire $20,000. KS will then deduct the $400 already paid to MO and leave the balance as your refund or amount owed.
2007-10-02 14:42:40 · answer #1 · answered by accountant 3 · 0⤊ 0⤋
If you moved into Kansas last year, you have the option to file a Kansas return as either a resident or a nonresident. As a resident, you must file a Kansas income tax return if you file a Federal income tax return or if your income is greater than the combined total of your Kansas standard deduction and your personal exemption amount.
As a nonresident, you must file a Kansas income tax return if you have any income from Kansas sources.
It is to your benefit to examine both the resident and nonresident filing options in determining your tax liability.
If you are a resident of Kansas for the entire year, you must file as a Kansas resident and report all income to Kansas, regardless of where it was earned. If the other state requires an income tax return to be filed, you must complete the worksheet in the Kansas tax booklet to determine your credit for taxes paid to other states. Be sure to include a copy of the other state's return with your Kansas return. Copies of the other state's W-2 forms alone are not acceptable. If the other state does not require an income tax return, you cannot claim a credit on the Kansas return.
For more information check the Kansas Dept of Revenue website (link below). You might also check the Missouri state website as well.
2007-09-30 13:18:29 · answer #2 · answered by mia 3 · 0⤊ 0⤋
Confusing me , but call these numbers .
Kansas is center but all the states are there
http://retirementliving.com/RLtaxes.html
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2007-09-30 13:04:14 · answer #3 · answered by kate 7 · 0⤊ 0⤋